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Big Biz to Be Allowed to Build Plants in Capital Region

Posted October. 31, 2008 09:13,   


Large companies can build or add new factories in industrial complexes located in the Seoul metropolitan area or relocate them from March.

The deregulation will benefit companies having difficulty due to developmental restrictions in the capital region such as Samsung Techwin, SK Chemicals, Taihan Electric Wire and Dongwon Enterprise.

President Lee Myung-bak presided over the eighth meeting of the Special Committee for Strengthening National Competitiveness yesterday to confirm measures “for effective land use.”

The measures will eliminate all regulations on 82 industrial complexes and new complexes to be built in Seoul and its vicinity. Companies can build factories up to the construction limit specified in the building coverage and the floor area ratios.

Companies had been allowed to add factories up to 3,000 square meters and build new factories between 1,000 to 10,000 square meters depending on industries in the area.

For example, Samsung Techwin wanted to expand its R&D center and development lines for prototype testing but its efforts were hampered by regulations. If laws are revised, the company will spend 180 billion won (141.8 million U.S. dollars) to build more factories.

Only adding and relocating factories will be allowed in non-industrial complex areas. Companies have been permitted to increase industrial facilities within a radius of 3,000 square meters in an industrial area within a growth management area, but are barred from expanding them to the construction limit.

All other industries can also relocate factories from highly restricted and natural preservation areas to less restricted areas for growth management.

The government also plans to ease factory development restrictions for the four major river areas, which limit the amount of water pollutants.

The limit on the number of factories in the metropolitan area will be raised to allow more plants to be built.

“We need a strategic response and drastic measure for the domestic market considering the global economy,” President Lee said at the meeting. “If we want to slow reform in times like this, we will be affected much more. We need to speed up deregulation.”

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